Deal Brings Real Estate Lending Platform Into Figure’s Network
Figure Technology Solutions Inc. (NASDAQ:FIGR) has entered into a definitive agreement to acquire Kiavi, an AI-driven lending platform focused on residential real estate investors, in a transaction valued at $717 million.
As part of the deal, Kiavi’s balance sheet assets will be acquired by a joint venture formed by Figure and global investment firm Sixth Street.
Kiavi provides financing solutions to property investors seeking to purchase, renovate and rent residential real estate. Its offerings include short-term Residential Transition Loans as well as longer-duration Debt Service Coverage Ratio (DSCR) loans for rental properties.
Acquisition Expected to Increase Marketplace Volume
Figure expects the transaction to significantly expand activity across its lending and capital markets platforms.
The company said Kiavi will contribute more than $7 billion in annual first-lien origination volume to its Figure Connect marketplace, while also adding more than $100 million per month to Democratized Prime, its blockchain-native warehouse funding platform.
Management estimates the acquisition opens access to an addressable origination market worth approximately $200 billion annually, all of which can potentially be processed through Figure’s tokenized infrastructure.
Strengthening Figure’s Blockchain Strategy
Figure said it currently represents approximately 75% of real-world asset tokenization activity and believes the addition of Kiavi will further accelerate adoption of blockchain-based capital markets solutions.
The company expects the combined business to support its medium-term EBITDA margin target of 60%, while also delivering earnings-per-share accretion and achieving an unlevered cash payback period of less than four years.
New AI Applications Planned Following Acquisition
The acquired lending platform will also play a key role in the rollout of Adaptor, Figure’s latest artificial intelligence product.
Kiavi’s asset class is expected to become the first application of Adaptor, which has been designed to facilitate agent-to-agent onboarding across both Figure Connect and Democratized Prime.
“Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform,” said Michael Tannenbaum, Figure CEO.
Leadership Team to Be Expanded
Following completion of the transaction, Kiavi Chief Executive Officer Arvind Mohan will join Figure’s executive leadership team as Chief Business Officer.
